FIG Partners Reiterates Outperform Rating, $11.50 PT on National Penn Bancshares

In a report published Wednesday, FIG Partners reiterated its Outperform rating and $11.50 price target on National Penn Bancshares NPBC. FIG Partners noted, “NPBC disclosed via an 8-K filing on August 14th that it has completed a $400 million debt restructuring with the Federal Home Loan Bank of Pittsburgh. The company had previously mentioned that this option existed but had not executed on the transaction until this week. The terms involved paying off a $459mm borrowing with 5 year average life with a new 7-year obligation that has a call feature in 1H-2013. The net effect is a 10 basis point improvement in NIM-Net Interest Margin which we feel should be sustainable over the next several quarters. We have revisited our previous EPS modeling for the remainder of 2012 and full-year 2013 giving credit for a 5 basis point NIM benefit in 3Q-2012 and then 10bps addition in the next 5 quarters. This creates an additional two cents to our 2012 EPS estimate ($0.65), but more importantly increases our 2013 projection by four cents to $0.74.” National Penn Bancshares closed on Tuesday at $8.76.